Government told to invest more in homes

The government should treble its investment in new social housing, an inquiry for the homelessness charity Shelter has concluded today.

The inquiry, chaired by Cherie Blair's former aide Fiona Millar, also called for more restrictions on the right to buy council homes to protect dwindling stocks of affordable homes.

And it recommended a rethink of John Prescott's plans to demolition thousands of homes in the north of England and the Midlands.

The inquiry heard evidence from around the country from people directly affected by the housing crisis. They were told of suicidal depression and self-harming among children living in bad housing and health problems like skin disorders caused by squalid conditions.

They also heard how children in temporary homes frequently missed out on education and social services as a result of moving around.

One in ten children now lives in overcrowded conditions, the inquiry found.

To help solve such problems, the inquiry said investment in social housing should increase from 0.2% of GDP to 0.5%. This would takes levels from £1.6bn to almost £5bn.

The inquiry report, Generation Squalor, pointed out that despite increase investment, the number of new affordable homes has declined under Labour.

"In England, the number of new social homes being built is still less than in 1997 and is only around half that achieved in the mid-1990s. In Scotland, current output is running at half the level achieved in 1980," it said.

Launching the report Shelter's director, Adam Sampson, said: "We are calling fro a trebling of investment in social housing. It is only with this extra focus that housing will be given the priority it, and the children affected by it, deserve."

In foreword to the report Ms Millar questioned the government's drive to increase home ownership. She said: "Offering people the chance to buy their own homes is a worthy goal, but if it is at the expense of more affordable social housing and giving all children a warm, safe place to live; it may be a short-sighted one."

The report said: "Right to buy should be curtailed, especially in areas of housing shortage, and new schemes developed that help people into home ownership without depleting our housing stock."

The inquiry heard that Mr Prescott's plans to revive declining housing markets in the north of England was pushing up house prices and increasingly property speculation. It said the programme should be reviewed to ensure that it does not lead to increased homelessness.